News Summary
Eric Smith, a former surgical sales representative, was sentenced to 12 months and a day in prison for conspiracy and bribery related to a fraudulent scheme at the James H. Quillen VA Medical Center. Smith, along with others, engaged in corrupt practices that compromised the procurement processes, resulting in significant financial losses for the facility. As part of the sentencing, he was ordered to pay restitution and forfeited substantial amounts from bank accounts. The case highlights ongoing corruption issues within the VA healthcare system.
Johnson City, TN – Eric Smith, a former surgical sales representative, was sentenced to 12 months and one day in prison for his role in a fraudulent scheme involving the James H. Quillen VA Medical Center. Smith, 54, pleaded guilty to conspiracy and bribery charges in January 2025, confronting serious legal repercussions for his actions. On July 16, 2025, he was also ordered to pay restitution of $120,433.45, a sum he had previously agreed to in January 2024. Furthermore, Smith forfeited bank accounts containing more than $156,000 as part of the legal proceedings against him.
After serving his prison term, Smith will be subject to three years of supervised release, highlighting the serious nature of his offenses. The case does not end with Smith; another surgical sales representative implicated in the fraud, Landon Chester, 36, is set to face sentencing on August 5, 2025. Chester, like Smith, was involved in a scheme that corrupted the procurement processes at the VA Medical Center.
The fraudulent activities centered around bribing two VA employees to facilitate a scheme that defrauded the medical center. In a related criminal case, twin sisters Monika and Teresa Schorer, both 59, who were former employees at the James H. Quilen VA Medical Center, pleaded guilty to conspiracy to commit honest services wire fraud on the same day as Smith’s sentencing. The Schorers face potential penalties of up to 20 years in prison, fines reaching $250,000, and an additional three years of supervised release. They have also agreed to pay a combined restitution of $426,309.
The evidence presented indicated that Smith and Chester had paid the Schorers significant bribes in cash in 2018, which allowed them to continue purchasing overpriced and medically unnecessary inventory. Reports from the Department of Justice indicate that the Schorers received bribes of $9,900 and $7,000 each in the fall of 2018 as part of the scheme. Following their involvement, Smith and Chester established their own company and began selling their inventory at inflated prices, leading to substantial financial losses for the VA Medical Center.
This case sheds light on a broader concern regarding corruption and fraud within the VA healthcare system, where employees accepted bribes to enhance personal gain at the expense of taxpayer-funded resources. Such activities compromise the integrity of the healthcare system meant to serve veterans and emphasize the need for ongoing scrutiny and reform within these institutions.
The ramifications of these fraudulent actions extend far beyond the individuals involved, impacting the trust and well-being of veterans who rely on the VA for medical care. As investigations continue into these corrupt practices, there remains a crucial need for transparency and accountability within the system. This landmark case serves as a stark reminder of the vulnerabilities present in healthcare procurement processes and the importance of safeguarding them against exploitation.
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Additional Resources
- WCYB News
- Wikipedia: Health care fraud
- WAVY News
- Google Search: Chesapeake hospital healthcare fraud
- Stripes News
- Google Scholar: VA budget hearing
- WJHL News
- Encyclopedia Britannica: Fraud
- Fox News
- Google News: VA facility sexual misconduct
Author: STAFF HERE BRISTOL WRITTER
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